Thursday, April 23, 2009
Felix Salmon thinks the money "velocity" problem in the U.S. (where plenty of money exists, it's just not being spent fast enough) could be quickly solved if the Treasury Department would apply a "Use on or before" date to the dollar as the Reserve Bank of Zimbabwe does.
He finds fault with Greg Mankiw's brainfart from Sunday that would have one out of every ten U.S. bills expire at the end of the year based on the randomly selected last digit of the serial number. Too much unpredictability and potential for panic, apparently.
Makes sense. I'm just dying to know where these Zimbabwe bills end up on the day or two before they expire. Somebody's got to get stuck with them. Don't they? Can you just swap them at a bank on December 31st?